From left: RHB Investment Bank Bhd head of group capital markets & advisory Jaimie Sia, RHB Investment Bank managing director/chief executive officer Kevin Davies, Mega Fortris Bhd group managing director cum group chief executive officer Datuk Adrian Ng, Mega Fortris non-independent non-executive chairman Datuk Nick Ng, AmInvestment Bank Bhd deputy chief executive officer Christopher Ng and AmInvestment Bank head of equity capital markets Leong Cheng Yuen.
KUALA LUMPUR: Security seal manufacturer Mega Fortris Bhd aims to raise RM99.07mil from its initial public offering (IPO) en route to listing on the Main Market of Bursa Malaysia on Nov 11, 2024.
The IPO exercise consists of the issuance of 147.87 million new shares at a price of 67 sen per share.
Upon listing, Mega Fortris is expected to have a market capitalisation of RM566.13mil.
Group managing director cum group chief executive officer (CEO) Datuk Ng Meng Poh said 88.8% of the proceeds from the IPO exercise will be allocated towards the group’s expansion plans.
“We are excited to implement our business strategies including expanding our production facilities in Malaysia, establishing a new United Kingdom plant to serve customers in Europe, the United States, Middle East as well as Africa.
“We will also be venturing into a new business of supplying and handling playing cards in sealed security boxes in Malaysia and Macau,” he said during his opening remarks at Mega Fortris’ prospectus launch here yesterday.
A total of RM42.98mil, equal to 43.38%, will be allocated towards the establishment of the new plant in the UK.
He said through the new plant, the group will have an additional capacity of 200 million units annually.
This will add an extra 40% capacity to Mega Fortris’ current capacity of 551 million seals per year.
Meanwhile, its new business venture in Macau encompassed a total allocation of RM45mil, whereby the group will offer an end-to-end solution to its clients – who are casino operators – complementing its existing business of manufacturing security boxes and seals.
“Casinos are a portion of our business and we’ve been supplying them for the past 15 to 18 years. Through this, we are going to the front-end by supplying total solutions to our clients and the production of playing cards in sealed security boxes is a part of our project to move forward,” he said.
Mega Fortris group chief operating officer Jason Francis White said the group is uniquely positioned to deliver on the demands within the security seal industry.
“This will increase the movement of goods in global trade itself – and that requires a natural trend of movement of additional security seals within those environments.
“We’ve spent a considerable amount of time, not only the last 28 years.
“But over the last five years since we started working on this exercise, preparing ourselves to deliver on these demand options that exist in the market at the moment,” he added.
Meanwhile, RHB Investment Bank Bhd managing director and CEO Kevin Davies said Mega Fortris’ agility, which has continued to adapt to ongoing global challenges, positions the group well to capitalise on the growing demand for security solutions across industries.
The remainder of the proceeds will be allocated to defray listing expenses amounting to RM11.10mil, equivalent to 11.20% of the proceeds.
The IPO also involved an offer for sale of 147.87 million existing shares – with 80.27 million shares being made available to selected investors and 67.6 million shares for bumiputra investors approved by the Investment, Trade and Industry Ministry.
Applications for the public issue portion of the IPO will close on Oct 28 at 5pm.
RHB Investment Bank is the principal adviser, sponsor, underwriter and placement agent for the IPO exercise.
